Going global: NCREIF partnership launches worldwide index for unlisted real estate funds
All real estate is local. Real estate is all about location, location, location, and it is easier to know your neighborhood than a neighborhood halfway around the world. So why are so many people interested in going global? The answer is capital. In today’s world, capital travels at the speed of electrons, and investors compare markets globally for the best investment opportunities.
In other asset classes, it is easy to compare the performance of markets. Stocks, bonds, commodities and even public real estate markets all have global indices that make comparisons across markets, countries and regions relatively easy to do. That was not true of private real estate. This lack of transparency is a detriment to the industry and an impediment to investors everywhere.
NCREIF, along with INREV (the European Association for Investors in Non-Liste